socal_driver

People say matter-of-factly that changing agents/brokers while staying with the same insurance company will not lower your premium because the broker has no control over the calculations and settings behind each factor. While this is technically true, the reality in PRACTICE is very, very different because of differences in communication. Any given broker may or may not notify you of new discounts or changes in existing discounts or even ask you about changes in your annual mileage or driving style. In fact, every 6 months over the last 2.5 years, when it's time for my next 6-month payment, I called my broker and asked if there were any new discounts or ways to decrease my premium. She would say no each time and that it wouldn't matter if I changed brokers, that Mercury Auto Insurance decides the amount.

Because of a recent issue, which is described in another thread but is irrelevant here, I called a different broker who deals with a bunch of insurance companies including Mercury. This broker invited me over and was willing to show me the actual Mercury spreadsheet program and how each change would affect my premium. When I got to her office, she immediately asked me what my degree is in. I told her I have a Biology degree, and she told me that falls under Group Discounts- Scientist, which was good for a 15% discount. I was shocked because I distinctly remember discussing that discount almost 3 years ago with my agent. When I got home, I checked all my old Mercury statements and discovered that Biology was added among the list of science majors in the middle of 2005. Yet my agent never told me (the bitch said she wasn't aware of it).

The new agent and I also adjusted my annual mileage. I had no idea it could affect my premium THAT MUCH. I also have an old econo car. When I first bought my RX8, I estimated my annual mileage to be 30,000: 20000 on the RX8 for work, 10000 on the econo car for leisure. With the crazy gas prices, I have switched to my econo car for work. In addition, I calculated that my current mileage is only about 10,000 annually. So the new broker put me in for 7000 on the econo car and 3000 on the RX8. And voila!

My old premium was $1734 yearly (even though I recently moved to LA county, I'm doing the numbers as if I had always lived in LA) and my new premium is $1080! Needless to say, I immediately switched brokers while staying with Mercury Auto Insurance.

jimbo99

Interesting. I'd guess that auto insurance brokers/agents make their money the same as life insurance - the premium. Higher the premium - higher the initial commission and residuals for renewals.

I've got 21st Centuary with 4 drivers on it and I've had long discussions with their customer service reps on who is the designated driver for which vehicle. Interestingly it is cheaper to insure my 19-yr old son on a V-8 pick-up than a 4-6 cylinder econo car or mini van.